Atour profit jumps 90% as hotel milestone and retail surge drive growth

Atour Lifestyle Holdings (NASDAQ:ATAT) reported a robust start to fiscal year 2026, delivering triple-digit profit momentum and aggressive top-line growth.

The Shanghai-based company saw its net revenues climb 47.5% year-over-year to RMB2,811 million (US$408 million), while net income surged 90.3% to RMB463 million.

The results reflect a successful synergy between Atour’s "manachised" hotel model and its fast-growing retail business, which continues to differentiate the brand in China’s competitive hospitality market.

A key operational highlight was the expansion of the company’s physical footprint.

Atour’s hotel network reached a milestone of 2,088 hotels with 232,298 rooms in operation, representing a 20.9% increase in property count from the prior year.

Despite the rapid expansion, RevPAR (revenue per available room) remained resilient at RMB312, up from RMB304 in the same period of 2025.

This growth was primarily fee-driven, with manachised hotel revenue alone rising 51.9% to RMB1,568 million.

Beyond hospitality, Atour’s retail division—centered on its "Atour Planet" brand—delivered a 54.4% revenue increase to RMB1,071 million.

The segment, which specializes in premium sleep-related products like pillows and duvets, now accounts for a significant portion of the group’s total turnover.

Management attributed this momentum to high-quality product innovation and growing brand recognition among its loyalty program members, which now exceeds 112 million people.

Profitability metrics remained strong despite increased investment in brand development.

Adjusted EBITDA rose 51.1% to RMB716 million, and adjusted net income reached RMB490 million.

The company’s balance sheet remains highly liquid, with cash and restricted cash totaling RMB3.7 billion, significantly outweighing its total borrowings of RMB 242 million.

Looking ahead, Atour has set a confident trajectory for the remainder of the year.

The company expects full-year 2026 net revenues to rise between 24% and 28% compared to 2025.